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TMC Announces June 27, 2025 Submission Date for Subsidiary NORI’s ISA Application, and Expanded Company Strategy

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TMC announces its subsidiary NORI will submit ISA exploitation application on June 27, 2025, following discussions with Nauru. The company expects quarterly cash use below $5 million during application review and won't raise funds for Hidden Gem vessel preparation until achieving regulatory clarity or securing non-dilutive financing. TMC is exploring new strategic directions, including developing a services business for seafloor resource development and diversifying its resource portfolio. The ISA Council will receive a revised consolidated text of the draft Mining Code by November 2024. The company plans to reduce operating expenses and is in discussions for services contracts in exploration, resource definition, and environmental assessments.

TMC annuncia che la sua sussidiaria NORI presenterà una domanda per l'esplorazione ISA il 27 giugno 2025, a seguito di discussioni con Nauru. L'azienda prevede di utilizzare meno di 5 milioni di dollari in contante trimestralmente durante la revisione della domanda e non raccoglierà fondi per la preparazione della nave Hidden Gem fino a quando non otterrà chiarezza normativa o non garantirà finanziamenti non diluitivi. TMC sta esplorando nuove direzioni strategiche, compreso lo sviluppo di un business di servizi per lo sviluppo delle risorse del fondale marino e la diversificazione del proprio portafoglio di risorse. Il Consiglio ISA riceverà un testo consolidato rivisto del progetto di Codice Minerario entro novembre 2024. L'azienda prevede di ridurre le spese operative ed è in trattative per contratti di servizi in esplorazione, definizione delle risorse e valutazioni ambientali.

TMC anuncia que su subsidiaria NORI presentará una solicitud de explotación de ISA el 27 de junio de 2025, tras conversaciones con Nauru. La empresa espera un uso de efectivo trimestral inferior a $5 millones durante la revisión de la solicitud y no recaudará fondos para la preparación del buque Hidden Gem hasta obtener claridad regulatoria o asegurar financiamiento no dilutivo. TMC está explorando nuevas direcciones estratégicas, que incluyen el desarrollo de un negocio de servicios para el desarrollo de recursos del fondo marino y la diversificación de su cartera de recursos. El Consejo de ISA recibirá un texto consolidado revisado del borrador del Código Minero para noviembre de 2024. La empresa planea reducir los gastos operativos y está en conversaciones para contratos de servicios en exploración, definición de recursos y evaluaciones ambientales.

TMC는 자회사 NORI가 나우루와의 논의에 따라 2025년 6월 27일 ISA 개발 신청서를 제출할 것이라고 발표했습니다. 회사는 신청서 검토 기간 동안 분기별 현금 사용이 500만 달러 이하일 것으로 예상하며, 규제 명확성을 확보하거나 희석되지 않는 자금을 확보하기 전까지 Hidden Gem 선박 준비를 위해 자금을 조달하지 않을 것입니다. TMC는 해저 자원 개발을 위한 서비스 사업 개발과 자원 포트폴리오 다각화를 포함한 새로운 전략 방향을 모색하고 있습니다. ISA 위원회는 2024년 11월까지 개정된 통합 초안을 받을 예정입니다. 회사는 운영 비용을 줄일 계획이며, 탐사, 자원 정의 및 환경 평가를 위한 서비스 계약 논의 중에 있습니다.

TMC annonce que sa filiale NORI soumettra une demande d'exploitation ISA le 27 juin 2025, suite à des discussions avec Nauru. L'entreprise s'attend à une utilisation de liquidités trimestrielle inférieure à 5 millions de dollars pendant la révision de la demande et ne lèvera pas de fonds pour la préparation du navire Hidden Gem tant qu'elle n'aura pas obtenu de clarté réglementaire ou sécurisé un financement non dilutif. TMC explore de nouvelles orientations stratégiques, y compris le développement d'une activité de services pour le développement des ressources du fond marin et la diversification de son portefeuille de ressources. Le Conseil ISA recevra un texte consolidé révisé du projet de Code minier d'ici novembre 2024. L'entreprise prévoit de réduire ses frais d'exploitation et est en pourparlers pour des contrats de services en exploration, définition des ressources et évaluations environnementales.

TMC gibt bekannt, dass ihre Tochtergesellschaft NORI am 27. Juni 2025 einen Antrag auf ISA-Nutzung einreichen wird, nachdem Gespräche mit Nauru geführt wurden. Das Unternehmen erwartet eine vierteljährliche Barausgaben unter 5 Millionen Dollar während der Antragsprüfung und wird keine Mittel zur Vorbereitung des Schiffs Hidden Gem beschaffen, bis es regulatorische Klarheit erreicht oder nicht-dilutive Finanzierungen gesichert hat. TMC erkundet neue strategische Richtungen, einschließlich der Entwicklung eines Dienstleistungsunternehmens für die Entwicklung von Ressourcen des Meeresbodens und der Diversifizierung seines Ressourcenportfolios. Der ISA-Rat wird bis November 2024 einen überarbeiteten konsolidierten Entwurf des Mining Codes erhalten. Das Unternehmen plant, die Betriebsausgaben zu senken und ist in Gesprächen über Dienstleistungsverträge in den Bereichen Exploration, Ressourcenbestimmung und Umweltbewertungen.

Positive
  • Expected quarterly cash burn reduction to less than $5 million
  • Company has invested over $500 million since inception, developing valuable expertise
  • New revenue opportunities through services business development
  • Portfolio diversification strategy into new exploration areas
Negative
  • Delayed ISA exploitation application submission to June 2025
  • Postponement of Hidden Gem vessel capital expenditures
  • Operating expense reductions indicating cost-cutting measures
  • Regulatory uncertainty affecting commercial production timeline

Insights

TMC's announcement reveals significant strategic shifts and operational planning. The key points include: June 27, 2025 submission date for NORI's ISA exploitation application, reduced quarterly cash burn to $5 million and a strategic pivot towards service-based revenue streams.

The company's decision to defer capital expenditures until regulatory clarity emerges is financially prudent. The expansion into services leveraging their $500 million investment in seafloor mining expertise could create near-term revenue opportunities while awaiting regulatory developments. This diversification strategy could help mitigate regulatory risks and create additional value streams.

The company's cash preservation strategy and focus on non-dilutive financing options shows strong financial discipline. However, investors should note that commercial production timeline remains uncertain pending regulatory approvals.

The timing of NORI's application submission strategically aligns with the ISA's regulatory development timeline. The decision to wait until after the March 2025 ISA meetings demonstrates a calculated approach to navigate the evolving regulatory landscape.

The engagement with the new ISA Secretary-General and Nauru's formal request for process clarification suggests proactive stakeholder management. However, investors should note that the Mining Code's final adoption timeline remains uncertain, despite progress in the first reading completion. This regulatory uncertainty continues to be a key risk factor for the project's advancement.

NEW YORK, Nov. 12, 2024 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or “the Company”), an explorer of lower-impact battery metals from seafloor polymetallic nodules, today provided a corporate update on the expected submission date of the application to the ISA for an exploitation contract, and an expanded company strategy.

Update Highlights:

  • Following discussions between TMC subsidiary Nauru Ocean Resources Inc (NORI) and its sponsoring state, the Republic of Nauru, NORI has set the date of June 27, 2025 for the expected submission of its ISA exploitation application
  • Given it is unlikely the ISA would consider an application prior to its March 2025 session, the Republic of Nauru has requested in a formal letter that the ISA clarify the submission and review process during the March session, with the goal of providing certainty for all stakeholders and allowing for review to begin immediately after NORI’s submission under an agreed-upon process
  • Following the expected submission of NORI’s application, the Company expects quarterly cash use of less than $5 million as the application is reviewed, and does not expect to raise funds for capital expenditures relating to the preparation of the Hidden Gem vessel for commercial production until increased regulatory certainty is achieved or non-dilutive financing is secured
  • The Company has begun to explore a new strategy to (1) develop a services business for seafloor resource development and (2) optimize and diversify its resource portfolio within international waters and in certain national jurisdictions

Gerard Barron, TMC Chairman and CEO, commented: “After many years of conversations with current and prospective shareholders, it remains clear that the key catalyst everyone is waiting for is the delivery of the Mining Code. Following discussions with Member States and the incoming ISA Secretary-General during the UN General Assembly in September, I remain confident that the work on the Mining Code remains on track. These discussions have also informed the decision to submit the NORI application in June 2025, in consultation with Nauru. Investors can be assured that we will not be raising funds for CAPEX related to the Hidden Gem vessel until we see sufficient regulatory progress, whether through delivery of the Mining Code or additional clarity on the ISA’s review of our application based on the draft regulations.

But TMC’s value proposition extends beyond a narrow focus on the Mining Code and NORI application. We are now in a strong position to leverage our investment of over half a billion dollars and capabilities developed over the last decade-plus, as the eyes of the world’s largest economies turn to the seafloor to produce the metals needed for the energy transition, defense, infrastructure and the needs of a growing world population. I look forward to providing further color on this strategy.”

Application Submission and Strategy
NORI has set the date of June 27, 2025 for its expected submission of its ISA exploitation application. According to the ISA Council's decisions ISBA/28/C/24 and ISBA/28/C/25, if NORI submits an application for a plan of work for exploitation before the RRPs have been adopted, the ISA Council at its next meeting, as a matter of priority, will consider the process for considering such an application. The ISA Council is not scheduled to meet again until March 2025 and the Company believes it is unlikely that the ISA Council would consider an application for a plan of work for exploitation before this session. In light of this, Nauru has formally requested that the ISA clarify the submission and review process for such an application at the March 2025 meetings before NORI submits the Application and, therefore, has decided to submit the Application after the March 2025 meetings on June 27, 2025.

ISA Progress on the Mining Code
The ISA Council completed a first reading of the consolidated text of the draft Mining Code at the July 2024 Council meeting. It was agreed that a revised consolidated text of the draft Mining Code would be provided to the ISA Council by the end of November 2024. The Company has engaged with Leticia Reis de Carvalho, the newly-elected Secretary General of the ISA, and expects to work with Ms. Carvalho in a constructive manner as the ISA continues to work to have the final Mining Code adopted.

Operating Expense Reductions and Deferral of Capital Expenditures
Following the expected submission of the Application by NORI, the Company expects quarterly cash use of less than $5 million as the Application is reviewed. The Company has already begun the process of reducing or eliminating certain operating expenses to ensure the Company’s financial resiliency.

Further, the Company does not expect to raise funds for capital expenditures related to the preparation of the Hidden Gem vessel for commercial production until such time as the final Mining Code is adopted, the Application is approved, or until other potential non-dilutive strategic financing is in place. The Company expects to provide further updates on the potential timing of the start of commercial production following sufficient clarity on these items.

Expanded Company Strategy
Given the significant rise in seafloor resource exploration opportunities around the globe and the Company’s leadership position and experience in this industry, having invested over $500 million since inception to achieve milestones in environmental research, resource definition, test mining and test processing, the Company is exploring a new strategy to (1) develop a services business for seafloor resource development and (2) optimize and diversify its resource portfolio within international waters and in national jurisdictions. We are in discussions with several parties on services contracts to provide our expertise in the areas of new exploration plans of work, resource definition, environmental impact assessments, data management and offshore campaign execution. We are also actively evaluating opportunities for the Company to enter new exploration contract areas, already permitted properties and producing properties.

About The Metals Company
The Metals Company is an explorer of lower-impact battery metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for the global energy transition with the least possible negative impacts on planet and people and (2) trace, recover and recycle the metals we supply to help create a metal commons that can be used in perpetuity. The Company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean regulated by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga. More information is available at www.metals.co.

More Info 
Media | media@metals.co
Investors | investors@metals.co

Forward Looking Statements
This press release contains “forward-looking” statements and information within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, including related to statements regarding the Application and the timing of the submission and review thereof, the adoption of the final Mining Code, the Company’s expected future operating results and expenses, the timing and amount of capital expenses, new business opportunities and strategies for the Company and the Company's preliminary unaudited financial information as of and for the three months ended September 30, 2024. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside TMC’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: changes in the Company's financial results for the period ended September 30, 2024 from those set forth in the preliminary unaudited financial information as of and for the three months ended September 30, 2024; TMC’s strategies and future financial performance; the ISA’s ability to timely adopt the final Mining Code and/or willingness to review and/or approve a plan of work for exploitation under UNCLOS; TMC’s ability to obtain exploitation contracts or approved plans of work for exploitation for its areas in the CCZ; regulatory uncertainties and the impact of government regulation and political instability on TMC’s resource activities; TMC’s ability to comply with its exploration contracts and maintain their effectiveness without monetary penalty, suspension or termination; changes to any of the laws, rules, regulations or policies to which TMC is subject, including the terms of the final Mining Code, if any, adopted by ISA and the potential timing thereof; the impact of extensive and costly environmental requirements on TMC’s operations; environmental liabilities; the impact of polymetallic nodule collection on biodiversity in the CCZ and recovery rates of impacted ecosystems; TMC’s ability to develop minerals in sufficient grade or quantities to justify commercial operations; the lack of development of seafloor polymetallic nodule deposit; TMC’s ability to successfully enter into binding agreements with Allseas Group S.A. and other parties in which it is in discussions, if any; uncertainty in the estimates for mineral resource calculations from certain contract areas and for the grade and quality of polymetallic nodule deposits; risks associated with natural hazards; uncertainty with respect to the specialized treatment and processing of polymetallic nodules that the Company may recover; risks associated with collective, development and processing operations, including with respect to the development of onshore processing capabilities and capacity and Allseas Group S.A.’s expected development efforts with respect to the Project Zero offshore system; TMC’s dependence on Allseas Group S.A.; TMC’s ability to successfully adopt and profitably execute a new business strategy to develop a services business and to optimize and expand its resource portfolio; fluctuations in transportation costs; fluctuations in metals prices; testing and manufacturing of equipment; risks associated with TMC’s limited operating history, limited cash resources and need for additional financing; risks associated with TMC’s intellectual property; Low Carbon Royalties’ limited operating history; and other risks and uncertainties, including those under Part I, Item 1A “Risk Factors” in TMC’s Annual Report on Form 10-K for the year ended December 31, 2023, filed by TMC with the SEC on March 25, 2024, and in TMC’s other future filings with the SEC, including TMC’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. TMC cautions that the foregoing list of factors is not exclusive. TMC cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. TMC does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based except as required by law.


FAQ

When will TMC submit its ISA exploitation application?

TMC's subsidiary NORI will submit its ISA exploitation application on June 27, 2025.

What is TMC's expected quarterly cash use after application submission?

TMC expects quarterly cash use to be less than $5 million during the application review period.

What new strategic directions is TMC exploring?

TMC is exploring developing a services business for seafloor resource development and diversifying its resource portfolio in international waters and national jurisdictions.

When will TMC proceed with Hidden Gem vessel preparation?

TMC will not raise funds for Hidden Gem vessel preparation until achieving regulatory clarity through Mining Code adoption, application approval, or securing non-dilutive financing.

TMC the metals company Inc.

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